--- title: Executive Severance Packages canonical_url: https://tzlawyers.ca/executive-severance-lawyer last_updated: 2026-06-08T07:59:43-04:00 plugin_version: 1.2.2 --- # Executive Severance Packages Understanding Executive Severance Packages ------------------------------------------ Losing a senior role, whether through a corporate restructuring, a boardroom disagreement, or a termination that blindsided you, is disorienting. One day you are running a division or sitting in the C-suite, and the next you are handed a severance offer and told to have your lawyer look it over. The problem is that the severance offer sitting on the table was almost certainly drafted by the employer's legal team. It is written to protect the company's interests, not yours. That is where an experienced executive severance package lawyer comes in. At TZ Law, our employment lawyers routinely work with senior executives, vice presidents, and C-suite leaders in Alberta and BC, navigating some of the most consequential career transitions of their lives. What Is an Executive Severance Package? --------------------------------------- An executive severance package is the set of terms an employer offers a departing senior employee when the employment relationship ends. It typically covers compensation, benefits, and a range of post-employment obligations. Unlike a standard employee who might receive a severance pay and a reference letter, executives usually have compensation structures with multiple moving parts — base salary, annual bonuses, long-term incentive plans, stock options, pension contributions, and more. A severance package for a senior executive needs to account for all of these elements, and the initial offer almost never does so fully. Severance agreements also ask the executive to give something up in return — usually a full legal release, along with commitments around confidentiality, non-solicitation, and sometimes non-competition. These obligations can have a real impact on your ability to earn a living after you leave. An executive severance package is not a take-it-or-leave-it proposition. It is a negotiation, and the outcome depends heavily on whether you have the right severance lawyer in your corner. Executive Severance Packages Canada: What Is Usually Included Executive severance packages in Canada tend to be more generous than in many other jurisdictions because Canadian courts have consistently held that senior employees are entitled to substantial notice periods when terminated without cause. But employers still routinely offer less than what the law requires. Here is what a comprehensive executive severance package in Canada typically addresses:1. **Severance pay or salary continuation** — This is the core financial component. It may be paid as a lump sum or continued over the notice period. The amount is usually tied to length of service, age, seniority, and the availability of comparable employment. 2. **Annual bonus and incentive compensation** — If you would have earned a bonus during your notice period, that amount should be reflected in your severance. Employers often try to exclude bonus payments, which is a negotiation point worth pushing on. 3. **Stock options and equity compensation** — Restricted share units, stock options, deferred share units, and other equity instruments can represent a significant portion of total executive compensation. There may be room to negotiate continued vesting or accelerated payout. 4. **Pension and retirement plan contributions** — Employer contributions to registered pension plans, group RRSPs, or deferred profit-sharing plans should continue through the notice period. Employers frequently omit this from initial offers. 5. **Benefits continuation** — Health, dental, life insurance, disability coverage, and executive wellness programs should remain in place for the duration of the reasonable notice period. 6. **Outplacement services** — Many employers will agree to fund professional career transition support, including executive coaching and job search resources. 7. **Legal and accounting fees** — It is not uncommon for the employer to cover a portion of the executive's legal and accounting expenses related to the severance negotiation. 8. **Restrictive covenants** — Non-solicitation, non-competition, and confidentiality clauses are standard in executive agreements. Their scope, duration, and enforceability should be carefully reviewed because they directly affect your future career options. Not every package will include all of these elements, and employers will not always volunteer them. A skilled executive severance package lawyer knows what to ask for and how to frame the request in a way that moves the negotiation forward. The Difference Between "Severance Pay" and "Reasonable Notice" These two terms get used interchangeably in casual conversation, but they are legally distinct and understanding the difference matters. **Severance pay** in the statutory sense refers to the minimum amounts that provincial employment legislation requires an employer to provide upon termination. In Alberta, these minimums are set out in the *Employment Standards Code* and are based primarily on length of service. For most senior executives, they are far below what the law actually entitles you to. **Reasonable notice** is a common law concept referring to the amount of advance notice, or pay in lieu of that notice, that an employer must provide. Courts determine reasonable notice by weighing the employee's age, length of service, the character of the position, and the likelihood of finding comparable employment. For senior executives, common law reasonable notice is almost always significantly longer than the statutory minimums. Courts have regularly awarded 18 to 24 months for long-serving executives, and sometimes more. This matters because many severance offers are built around the statutory minimums with a modest top-up. If you sign without understanding your common law entitlements, you may be leaving a substantial amount of money on the table How Executive Severance Is Calculated in Alberta### Employment Standards Code Minimum Termination Pay (Alberta) Alberta's *Employment Standards Code* sets out the baseline. Every employer must provide at least this much, regardless of what the employment contract says:- 90 days to 2 years of service — 1 week of pay - 2 to 4 years of service — 2 weeks of pay - 4 to 6 years of service — 4 weeks of pay - 6 to 8 years of service — 5 weeks of pay - 8 to 10 years of service — 6 weeks of pay - 10 or more years of service — 8 weeks of pay For a senior executive earning a six- or seven-figure salary with a decade or more of service, eight weeks of pay is not even close to adequate. That is why the common law analysis is so critical.### Common Law Notice for Executives Under common law, Alberta courts look at what is often called the *Bardal* factors (named after the leading case *Bardal v. Globe & Mail Ltd.*) to determine a fair notice period:1. Age — Older executives typically receive longer notice periods because courts recognize the difficulty they may face in securing a comparable role. 2. Length of service — Longer tenure generally supports a more generous notice period, though this factor is not as dominant as many people assume. 3. Character of employment — This is where seniority matters most. The more senior and specialized the role, the longer the expected notice period. 4. Availability of comparable employment — If the executive works in a niche industry or a role with few equivalent positions, courts will account for the longer job search required. These factors work together, and no single formula applies to every case. But as a practical matter, many senior executives in Calgary with significant tenure can reasonably expect common law notice periods in the range of 12 to 24 months.Why You Should Never Sign an Executive Severance Package Without Legal Review ----------------------------------------------------------------------------- It is tempting to just get it over with. The termination is stressful, the employer is pushing for a quick resolution, and the numbers might look reasonable at first glance. But signing without legal review is one of the most expensive mistakes a senior executive can make. The offer was prepared by the employer's lawyers, whose job is to minimize the company's exposure. The initial offer is almost always a starting point, not a final number. Severance agreements also contain legal releases. Once you sign, you give up your right to pursue any further claims including wrongful dismissal, constructive dismissal, and human rights complaints. On top of that, restrictive covenants in the agreement can limit your career options for months or years. A severance lawyer can evaluate whether those clauses are enforceable and negotiate their scope to minimize the impact on your future. Finally, there are often hidden entitlements the initial offer does not address - unvested stock options, accrued vacation pay, prorated bonus payments, pension contribution shortfalls, and continued benefits coverage are all items that executives frequently overlook.Executive Severance Package Negotiation in Calgary -------------------------------------------------- ### What Can Be Negotiated? Almost everything. Employers may present their severance offer as though the terms are fixed, but in practice, most elements are open to discussion. Key areas where negotiation typically yields results:- The total severance payment — Whether paid as a lump sum or salary continuation, this number is nearly always negotiable when the initial offer falls short of common law reasonable notice. - Bonus and incentive compensation — Executives who would have earned bonuses during the notice period should push for those amounts to be included. - Equity compensation — The treatment of stock options, RSUs, and other equity instruments is one of the most complex and financially significant negotiation points. - Benefits continuation — Extending health, dental, and insurance coverage beyond the employer's initial offer is a common negotiation goal. - Pension contributions — Ensuring employer pension contributions continue through the full notice period can add meaningful value. - Outplacement support — Employers are often willing to fund executive career transition services. - Restrictive covenant terms — The duration, geographic scope, and breadth of non-competition and non-solicitation clauses can frequently be narrowed. - Legal fee reimbursement — Many employers will cover a reasonable amount of the executive's legal fees. - Reference and departure messaging — How the departure is communicated internally and externally matters for your reputation. The wording can be agreed upon as part of the negotiation. ### How Negotiations Typically Work The employer presents an initial severance offer, usually with a deadline for acceptance. The executive engages a severance lawyer to review the offer, assess entitlements under both statute and common law, identify gaps, and prepare a counter-proposal. From there, the negotiation may involve several rounds of back-and-forth between the executive's lawyer and the employer's legal counsel or HR team. In most cases, the matter resolves without litigation because employers generally prefer a negotiated settlement over the cost and publicity of a court proceeding. Lawyers at [TZ Law](https://tzlawyers.ca/) handle these negotiations with a focus on achieving the best possible outcome efficiently. Why Choose TZ Law for Senior Executive Employment Law Issues in Calgary TZ Law is a boutique employment law firm built around one thing: protecting employees' rights. That focus means the Team at TZ law is not spread across a dozen practice areas. Employment law, human rights, and workplace privacy are the core of what we do and that specialization makes a real difference when the stakes are high. TZ Law regularly advises on the full range of senior executive employment law issues, including:1. Wrongful dismissal and constructive dismissal claims 2. Executive severance package review and negotiation 3. Stock option and equity compensation disputes 4. Executive employment agreement drafting and review 5. Non-solicitation and non-competition agreement analysis 6. Restrictive covenant enforceability assessments 7. Workplace privacy and data protection matters 8. Human rights and workplace harassment claims TZ Law offers flexible retainer arrangements, including contingency, flat fee, hourly, and hybrid options, so you get experienced legal representation without the rigidity of a traditional firm structure. If you are a senior executive dealing with a severance package, a termination, or any complex employment law matter, TZ Law has the experience to help you secure the outcome you deserve. [Contact us today](https://tzlaw.ca.cliogrow.com/intake/03d147c924596615d3a4a76cb7705300) to schedule a consultation.